- Markets make opinions and a 10-year Treasury yield of 1.98% vs. 2.08% when Janet Yellen's Humphrey-Hawkins testimony began means the Fed chief's words will be spun as leaning dovish, though it's hard to find anything in at least the prepared remarks confirming that.
- Of particular interest was Yellen's saying the removal of "patient" from the FOMC statement makes a rate hike possible at any subsequent meeting (it also means the converse - that a rate hike is not assured at any subsequent meeting).
- Giving more fuel to the dovish lean camp are short-term interest rate futures. They're rallying (meaning lower rates for longer), with the a full 25 basis point rate hike now not baked in until after Labor Day.
- TLT +1.2%, TBT -2.4%
- Previously: Treasury yields fall as Yellen testifies (Feb. 24)
- Previously: Yellen: Bullish on economy and inflation, decline in oil a boon (Feb. 24)
- ETFs: TBT, TLT, TMV, SHY, IEF, TBF, EDV, TMF, PST, TTT, ZROZ, SBND, TLH, IEI, TYO, VGLT, DLBS, DTYS, BIL, UST, UBT, TLO, VGSH, VGIT, SHV, TBX, SCHO, GSY, TENZ, SCHR, DTYL, TYD, LBND, ITE, DTUS, SST, TYBS, DLBL, DTUL, TUZ, DFVL, FIVZ, TBZ, DFVS, TYNS, SYTL